Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient.

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy into the global economy.

This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since Independence in 1947, such as self reliance and socialistic policies of economic development, which mainly due to the inward looking restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other problems. This, despite the fact that India has always had the potential to be on the fast track to prosperity.

Now that India is in the process of restructuring her economy, with aspirations of elevating herself from her present desolate position in the world, the need to speed up her economic development is even more imperative. And having witnessed the positive role that Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the Southeast Asian countries and most notably China, India has embarked on an ambitious plan to emulate the successes of her neighbors to the east and is trying to sell herself as a safe and profitable destination for FDI.

Globalization has many meanings depending on the context and on the person who is talking about. Though the precise definition of globalization is still unavailable a few definitions are worth viewing, Guy Brainbant: says that the process of globalization not only includes opening up of world trade, development of advanced means of communication, internationalization of financial markets, growing importance of MNCs, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through uninhibited trade and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it also contains free inter-country movement of labor. In context to India, this implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India, removing constraints and obstacles to the entry of MNCs in India, allowing Indian companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad; carrying out massive import liberalization programs by switching over from quantitative restrictions to tariffs and import duties, therefore globalization has been identified with the policy reforms of 1991 in India.

The Important Reform Measures (Step Towards liberalization privatization and Globalization)

Indian economy was in deep crisis in July 1991, when foreign currency reserves had plummeted to almost $1 billion; Inflation had roared to an annual rate of 17 percent; fiscal deficit was very high and had become unsustainable; foreign investors and NRIs had lost confidence in Indian Economy. Capital was flying out of the country and we were close to defaulting on loans. Along with these bottlenecks at home, many unforeseeable changes swept the economies of nations in Western and Eastern Europe,...

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...Globalization and IndianEconomy - Presentation Transcript
1.
2. Globalization
* Globalization has come to be a principal characteristic feature of the new millennium and it has become an inescapable reality in today's society.
* No community and society can remain isolated from the forces of globalization
3. What is globalization
*Globalization is the increasing integration of economies and societies around the world, transcending the boundaries of the nation state, particularly through international trade and the flow of capital, ideas and people, the transfer of culture and technology, and the development of transnational regulations
4. Contd
* Globalization is caused by four fundamental forms of capital movement throughout the global economy. The four important capital flows are:-
* Human Capital
* Financial Capital
* Resource Capital
* Power Capital
5. Definition of globalization
* Tom G. Palmer of Cato Institute defines &amp;quot;globalization&amp;quot; as &amp;quot;the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.“
*...

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Fall of Rupee: Causes, impact and the role of RBI
The fall of rupee vs. Dollar has created the same conundrum what the rupee appreciation caused in year 2007. However, the impact has reversed this time with exporters making appreciated revenues and the importers feeling the heat. The increased demand for dollars vis-à-vis the India rupee has led to a sharp depreciation with rupee falling close to 18% from the Aug 2011 levels, and hitting an all time low of 54.32/USD on 15th December 2011, making it the worst performing Asian currency of the year.
Taking a closer look at these issues, the fall in rupee can be attributed primarily to 3 broad factors.
Firstly, the grim global economic outlook, essentially due to the European debt crisis. Due to turbulence in European markets, investors are considering dollars as a safe haven for their investments in the longer run. This led to an increased demand for dollars vis-à-vis the supply for rupee and thus the depreciation. Another line of thought could be that while investors are shifting from European markets, why are they not investing in the Indian markets? The Indian economic scenario for the entire 2011 has been plagued by high rate of inflation, hovering above 8%, and extremely low growth in manufacturing sector. The HSBC-PMI (Purchasing Managers index) fell to 51 in the month of December 2011. The cumulative effect of these factors is leading to a shift in...

...Impact of Recession on IndianEconomy & Changes in
Consumer Behaviour due to Recession
Introduction-
Almost everybody today seems to be discussing about the US Recessionary trend and its impact on emerging countries, more particularly India Economists, Industrialists and the common man on the streets seem to have been horrified by the very thought of recession in India and that too due to US. Decreasing industrial production, inflation, decreasing job opportunities, cost cutting, reducing purchasing power parity, et al are the aspects discussed among them through every possible mode like articles, talks & walks and places like washrooms, canteens, etc
But to me the reality is very different! Yes......
India will not be impacted largely by the US recession, simply because India is not which it was in the '80s-'90s.Although it will be immature on my part to say that India will not be impacted by the US recession at all, but the truth is that it will not get impacted adversely in the magnitude of what everyone feels.
What is a recession?
A drastic slowing of the economy. Where gross national or domestic product has fallen in two consecutive quarters. A recession would be indicated by a slowing of a nation's production, rising unemployment and falling interest rates, usually following a decline in the demand for money. A popular distinction between recession and depression is:...

...Impact of global meltdown on Indianeconomy in 2009 |
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Ashok Handoo | 08 Jan, 2009With the advent of 2009, economists are debating the extent of the impact of global meltdown on the Indianeconomy in 2009. The predictions range between somewhat optimistic to fairly pessimistic. But the common thread running is that 2009 will be challenging, indeed.
The Deputy Chairman of the Planning Commission Montek Singh Ahluwalia says the stimulus package part two is part of the government strategy to deal with the situation as it evolves.
The fiscal and monetary measures taken under the second package are targeted to increase liquidity for pushing up demand, addressing the concerns of the industries and provide incentives to exporters that have been hit by the recessionary conditions.
The first objective is aimed to be met by reducing the key interest rates further the CRR has been cut by point 5 percent, bringing it down to 5%. The repo and the reverse repo rates have been reduced by1% each, bringing them down to 5.5 % and 4% respectively. All this will leave more funds with the banks to enable them to lend more at lower rates of interest.
The second objective will be met by curbing cheap imports. That explains why certain duties on import of cement, Zinc and ferro-alloys, TMT bars etc. which were removed earlier to fight inflation, have been restored.
The third...

...﻿IMPACT OF GLOBAL CRISIS ON INDIANECONOMY
Prof. Vani Dhawan
Guru Nanak Institute of Management Studies
Abstract:
The Indianeconomy has shown considerable resilience to the global economic crisis by maintaining one of the highest growth rates in the world. The intensity of present economic meltdown is so high that it is being compared with the global economic recession in 1873, Great Depression of 1930’s and East Asian crisis of 1990’s. Global Financial Crisis is among the greatest financial challenges to the world economy which is originated in United States of America. The global economic slowdown is unprecedented in scale and has severe implications on policy formulation among emerging market. Currently India has one of the largest developing countries in the world. Its growth was interrupted by the global financial turbulence that was started in 2008 with the bankruptcy of Lehman Brothers. Industries such as Information Technology, Pharmaceuticals, BPO, ITES, Textiles, Automobile and Banking & Financial Services Sector in India suffered setbacks due to shrinking patronage and demand from western markets. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. This paper provides an overview of global financial crisis and its impact on the...

...Study of Implications of FDI on IndianEconomy
(NOV 2011)
Author: (original article never submitted/communicated at any place)
1. Srikant Misra, Research Scholar cum Sr. Instructor
Faculty of Management &amp; Research, Integral University,
Kursi Road, Lucknow-226026 UP India
Email ID: srikantmisra@rediffmail.com, srikant.misra15@gmail.com
Mobile No: 09919494606, 09305455902
Study of Implications of FDI on IndianEconomy
Abstract
Foreign direct investment (FDI) is always contributing in the positive growth toward the economy of one country due to the investment by another country or country’s personnel’s. The effectiveness and efficiency of Global economy depends upon the investor’s perception, if investment seen with the purpose of long terms investment in the social-economical development then it is said that the investment contributes positively towards global economy, if it is short term for the purpose of making profit then it may be less significant than that long term and disinvestment leads negative effect. The FDI may also be affected due to the governmental trade barriers and policies for the foreign investments and leads to less or more effective toward contribution in economy as well as GDP and GNP of the country.
In this paper, our aim is to point out the negative and positive implications which affect the economic scenario and also...

...Market Survey
By: Dr C. VETHIrAJAN
IMPACT OF TOURISM ON INDIANECONOMY
Tourism can generate maximum employment opportunity because of a large number of subsidiary industries.
September 2008 and a 3.3 per cent growth in passenger traffic through September. The negative trend intensified during 2009, exacerbated in some countries due to the outbreak of the AH1N1 influenza virus, resulting in a worldwide decline of 4 per cent in 2009 to 880 million international tourist arrivals, and an estimated 6 per cent decline in international tourism receipts.
Definition of tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organisation defines tourists as people who “travel to and stay in places outside their usual environment for more than 24 hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.” Hunziker and Krapf, in 1941, defined tourism as “the sum of the phenomena and relationships arising from the travel and stay of non-residents, insofar as they do not lead to permanent residence and are not connected with any earning activity.” In 1976, the Tourism Society of England’s definition was “Tourism is the temporary, shortterm movement of people to destinations outside the places where they normally live and work and their activities during the stay at each destination. It...

...Introduction to India & IndianEconomy:
India is the seventh largest country by area, the second-most populous country with a population of over 1,241,491,960 people. India is surrounded by three-water bodies namely Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east. India shares its border with 7 countries namely Pakistan, China, Nepal, Bhutan Afghanistan, Burma and Bangladesh. India is a democratic country and is governed under a parliamentary system consisting of 28 states and 7 union territories.
The Indianeconomy is the world's tenth largest by nominal GDP. Indianeconomy continues to grow at a good pace and holds a strong position on the global map. The country’s gross domestic product (GDP) has been growing at an average rate of 7.64 per cent for the last five years. It is today one of the most attractive destinations for business and investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors.
IndianEconomy based on Quarterly GDP in the past 5 Years: -
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Q1 9.2 % 7.8% 6.0% 8.5% 8.0%
Q2 9.3% 7.5% 8.6% 7.6% 6.7%
Q3 8.8% 6.1% 6.5% 8.2% 6.1%
Q4 8.8% 5.8% 8.5% 9.2%...

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